ONE BELT ONE ROAD

CHINA PAKISTAN

ECONOMIC CORRIDOR

Abdul Qadir Memon

Consul General of Pakistan

Hong Kong SAR

OBOR Features

Expanding the market: Easier access to

Chinese products

Creating regional growth

Creating land and maritime link to developing

neighboring countries and beyond

Lower cost of transportation

Ensure Energy/resource security

Develop western regions of China

OBOR Funding

Up to US$240 billion fund for OBOR related

projects:

China’s Silk Road infrastructure fund: US$40 billion

Asian Infrastructure Investment Bank (AIIB): US$100

billion

New Development Bank of the BRICS countries (NDB):

US$100 billion

OBOR Map

OBOR Corridors

1. China - Pakistan Economic Corridor

2. China - Mongolia - Russia Economic Corridor

3. Bangladesh - China - India - Myanmar Economic Corridor

4. New Asia-Europe Continental Bridge

5. China - Central Asia - West Asia Economic Corridor

6. China – Indochina Peninsula Economic Corridor

Introduction to Pakistan

Introduction to CPEC

Gwadar Economic Zone

CPEC Corridor

Bilateral MoU

Prime Minister Muhammad Nawaz Sharif’s visit to China in July 2013 –

his first official overseas trip since assuming office – marked a new phase

in the development of the relationship by putting economic cooperation

and connectivity squarely at the center of the bilateral agenda

CPEC – Institutional Structure

Joint Cooperation Committee

(Co-Chaired by Minister PDR and Vice Chairman

NDRC)

Planning

Joint Working Group

Energy

Joint Working Group

Transport Infrastructure

Joint Working Group

Gwadar

Joint Working Group

Industrial Parks/Economic Zones

Joint Working Group (To be formulated)

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Badin

GwadarThattaKarachi

Tharparkar

Tando Muhammad Khan

Dadu

Sibi

Uthal

Kohlu

Kalat

MultanVehari

Kachhi

Chagai

Washuk

Quetta

Nushki

Kharan

Turbat

Barkhan

Lodhran

Matiari Sanghar

Umerkot

Mastung

Panjgar

Khuzdar

Khanewal

Rajanpur

Kashmore

Jamshoro

Jacobabad

Shikarpur

Hyderabad

Pakpattan

BahawalpurDera Bugti

Mirpur Khas

Muzaffargarh Bahawalnagar

Rahim Yar Khan

D.G.Khan

Naushahro Feroze

Dir

Swat

TankWana

Zhob

Hangu

Bannu Karak

Swabi

Okara

Kasur

Jhang

Bajaur

Attock

Mardan

Layyah

Jhelum

Gujrat

Lahore

Ziarat

Chitral

Bhakkar

Shan

gla

Narowal

SailkotKhushab

Chiniot

SahiwalLoralai

Malakand

PeshawarNowshera

Mansehra

Mianwali

Sargodha

Sheerani

Charsadda

Hafizabad

Musa Khel

Abbottabad

IslamabadRawalpindi

Gujranwala

Faisalabad

Lakki Marwat

NankanaSahib

Qila Abdullah

T.T.SinghQila

Saifullah

Mindi Bahauddin

D.I.Khan

QambarShahdadkot

Dera Murad Jamali

Shaheed Benazirabad

Bagh

Neelum

Mirpur

Ghizer

Diamir

Astore

Hattian

GhancheKohistan

Muzaffarabad

Bhimber

Gojra

Nag

Hoshab

Chaman

Taftan

Chakothi

Kalam

BesimaRatoDero

DaryaKhan

Awaran

Surab

Battagram

Raikot

Pishin

Khairpur

H

MashkaiH

H Wadh

Sakrdu

N5

N110

S3

S1

N105

N305

N125

N120

N95

N85

N55

N70

N65

N50

N45

N40

N30

N25

N15

N10

M8

N155N255

M8

N75

N80

S2

N655

N35

China – Pakistan Economic Corridor

GWADAR – KHUNJRAB ROUTES

N5

N85

N10

N5

Larka

na

Chakwal

Khunjrab

National Highways

LEGEND

National Highways Total Length: 12,131 Km

N55

N55

N50

N25

Sukkur

M3

M4

M2

M1

M9

Long Term Alignment

Western PassageKhunjrab – Gwdar = 2,459

Km

Eastern PassageKhunjrab – Gwdar = 2,769

Km

Central PassageKhunjrab – Gwdar = 2,542

Km

KKH (N-35)Khunjrab – Burhan 784

Km

Bin Qasim Port14

CPEC - Timeframe

• 2014-2020

Short Term

• 2020-2025

Medium Term

• 2025-2030

Long Term

Progress of CPEC

6th JCC held in Beijing, Dec 29, 2016,

expressed satisfaction over the progress of

CPEC projects

Two new projects for each province added in

CPEC

Two Economic Zones for each province

prioritized for early action

First Trade Convoy

Special Security Division

Trade Convoy18

Operationalization of CPEC through launching

of first ever mega trade convoy, transporting

goods from Kashger to Gwadar, November

2016

Trade Convoy -13th Nov.201619

Opportunities in Pakistan

20

CPEC

Parallel Economic Activity

Allied Opportunities of CPEC Projects

Projects outside CPEC

SPECIAL ECONOMIC

ZONES

21

Proposed Special Economic Zones22

Region No of SEZs

Khyber Pakhtunkhwa (KP) 17

Balochistan 9

Sindh 4

Punjab 4

Gilgit-Baltistan 1

Islamabad Capital Territory 1

AJK 2

FATA 1

TOTAL 39

SEZs Incentives

Developers

one time duty exemption for plant and equipment

imported into for the development operation and

maintenance of a SEZ entity;

exemption from all taxes on income accruable in

relation to the development and operation of the SEZ

for a period of ten years

Zone Enterprises

exemption from custom duties and taxes on imports of

plant and equipment into the SEZ for installation

therein;

exemption from all taxes on income for a period of ten

years

23

GSP plus- unexplored potential24

Under GSP Plus Scheme, products produced

in Pakistan can be exported to European

market free of duty

Duty free access in EU coupled with low cost

of production in Pakistan, will give competitive

advantage to China, if Joint Ventures are

established and production base is shifted to

Pakistan

PETROLEUM PROJECTS

25

Gwadar-Kashgar Cross Country Oil

Pipeline26

27

Shanghai

Karachi

China

Pakistan

Gwadar

Beijing Kashgar

Persian Gulf

Present Route for Oil Cargo to Upper

China (10,500 Km)27

OIL JETTY AT PORT QASIM

28

AGRICULTURE & ALLIED

SECTORS

29

ENERGY30

ROADS & REAL ESTATE

INFRASTRUCTURE31

MINES & MINERALS32

MANUFACTURI

NG

33

Criticism on CPEC

Colonialism/Imperialism

Influx of Chinese population

Debt burden

Infant industry competition

Opportunities for Hong Kong

Infrastructure

“Many Hong Kong contractors are ranked very

high on a global scale and have the qualities and

resources to pursue infrastructure opportunities

along the belt and road”

Finance

raise funds for the Asian Infrastructure Investment

Bank (AIIB) via bond offerings, developing yuan

products, or providing project financing for

individual companies

36

Thank you

Energy Projects -Under

Implementation

No. PROJECTS MW

1 Port Qasim Electric Company Coal Fired, Sindh 1320

2 Sahiwal Coal-fired Power Plant, Punjab 1320

3 ENGRO Thar Coal-fired, Thar, Sindh 1320

4 HUBCO Coal Power Plant, Balochistan 660

5 Gwadar Coal Power Project (Final stage of discussions) 300

6Surface Mine in Block II of Thar Coal field, 6.5 Metric Ton

Per Annum, Thar Sindh

7 Quaid-e-Azam Solar Park, Bahawalpur, Punjab 300

8 UEP Wind Farm, Jhimpir, Sindh 100

9 Dawood Wind Farm, Bhambore, Sindh 50

10 Sachal Wind Farm, Jhimpir, Sindh 50

11 Suki Kinari Hydropower Station, KPK 870

12 Karot Hydropower Station, AJK & Punjab 72037

Transport Infrastructure38

No. PROJECTS KM

Roads

1 KKH Phase II (Thakot- Havelian Section) 118

2 Peshawar-Karachi Motorway (Multan-Sukkur Section) 392

Rail Sector Projects

3Expansion and reconstruction of existing Line ML-1

and establishment of Havelian Dry Port1,872

Gwadar Projects 39

No. PROJECTS

1 Gwadar - Free Economic Zone

2 Eastbay Expressway

3 Gwadar International Airport

4 Construction of Breakwaters

5 Dredging of berthing areas & channels

6 Infrastructure for Free Zone & EPZs port related industries

7 Necessary Facilities of Fresh Water Treatment and Supply

8 300 MW Coal Fired Power Plant

9 Pak China Friendship Hospital at Gwadar

10 Technical and Vocational Institute at Gwadar

11 Gwadar Smart Port City Master Plan

Other Projects 40

No. PROJECTS

1 Cross Border Optical Fiber Cable

2Digital Terrestrial Multimedia Broadcast

(Pilot project completed)

Long Term Perspective (2030)

41

Highways/Railways networks

Energy, Oil & Gas pipelines

Gwadar

industrial cooperation

Telecommunications

Trade & Commerce, , investment, industry, agriculture

Tourism, Services

Maritime

Water Resources

Finance